# DCMB SECURITIES LLC X-17A-5 (2024-09-24) — Broker-dealer annual report - Company: DCMB SECURITIES LLC - Form: X-17A-5 - Filed: 2024-09-24 - Period: 2024-06-30 - Accession: 0001427360-24-000006 - CIK: 1427360 - File #: 8-67831 - Type: Broker-dealer - Material weakness: No - Auditor: Ohab and Company, P.A. - Auditor location: Maitland, FL - Contact: Marie Katz - Phone: 917-733-6503 - Email: mkatz@cornpliance-risk.com - Website: cornpliance-risk.com - Signed by: John Donovan (President) Original filing: https://www.sec.gov/Archives/edgar/data/1427360/000142736024000006/DCMB063024pub.pdf --- {0}------------------------------------------------ #### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington,** O.C. **20549** # **ANNUAL REPORTS FORM X-17A-5 PART** Ill 0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 s~c FIL~ NUMBER **FACING PAGE** Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING **\_\_ 0\_7\_/0\_1\_f2\_0\_2\_3\_** AND ENDING **\_\_ 0\_6\_/\_3\_0\_/\_2\_0\_2\_4\_** MM/00/YY MM/0D/YY **A. REGISTRANT IDENTIFICATION** # NAME oF FIRM: \_\_\_\_\_ D\_C\_M\_B\_S\_e\_c\_u\_ri\_ti\_e\_s\_, \_L\_L\_C \_\_\_\_\_\_\_\_ \_ TYPE OF REGISTRANT (check all applicable boxes): @ Broker-dealer D Security-based swap dealer D Major security-based swap participant D Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PtACE OF BUSINESS: (Do not use a P.O. box no.) # 1700 West Loop South, Suite 450 | | (No. and Street) | | |----------------------------------------------|--------------------------------|----------------------------| | Houston | Texas | 77027 | | (City) | {State) | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | Marie Katz | (917) 733-6503 | mkatz@cornpliance-risk.com | | {Name) | (Area Code - Telephone Number) | (Email Address) | | | 8 . ACCOUNTANT IDENTIFICATION | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing• # Ohab and Company, P.A. | | (Name - if individual, state last, first, and middle name) | | | |----------------------------------------------|------------------------------------------------------------|---------|----------------------------------------------| | 100 E Sybelia Ave., Suite 130 | Maitland | FL | 32751 | | (Address) | (City) | (State) | (Zip Code) | | July 28, 2004 | | 1839 | | | T'" of ••0•rawi(PCA08 ,,.i.ratioo Nombe,, II a,plkaSeJ | | | FOR OFFICIAL USE ONLY | | | | | | | | • Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.l7a-S(e){l)(ii), if appllcable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMS control number. {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | | | | | I, _J_o_hn_D_o_no_v_a_n ______________ __, swear (or affirm) that, to the best of my knowledge and belief
, the | |------|--|----|-----------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------| | | | | financial report pertaining to the firm of DCMB Securities. LLC | as of | | 6/30 | | 2~ | | is true and correct. I further swear (or affirm) that neither the company nor any | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. #### **This filing•• contains (check all applicable boxes):** **iiii** (b) Notes to consolidated statement of financial conditio **!!i!** (a) Statement of financial condition. ntle: President - D (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation S-X). - D (d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.1Sc3-l or 17 CFR 240.18a-1, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3. - D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.1Sc3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - D 0) Computation for Determination of PAB Requirements under Exhibit A to§ 240.1Sc3-3. - D (rn) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (n) Information relatlng to possession or control requirements for security-based swap customers under 17 CFR 240.1Sc3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - □ (o) Reconciliations, including appropriate explanations, of the FOCUS Report w ith computation of net capital or tangible net worth under 17 CFR 240-1Sc3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - **iii** (q) Oath or affirmation in accordance with 17 CFR 240.17a-S, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240\_17a-S or 17 CFR 240.18a-7, as applicable. - D (s) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - ~ (t) Independent public account ant's report based on an examination of the statement of financial condition. - D (u) Independent public accountant' s report based on an examination of the financial report or financial statements under 17 CFR 240.17a-S, 17 CFR 240.18a-7, or 17 CFR 240.l 7a-12, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-S or 17 CFR 240.lSa-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-le or 17 CFR 240.17a-12, as applicable. - D (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). D (z) Other: \_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - •"•To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {2}------------------------------------------------ # **DCMB** Securities, LLC Financial Statement and Report of Independent Registered Public Accounting Firm Pursuant to Rule 17a-5 under the Securities Exchange Act of 1934 June 30, 2024 {3}------------------------------------------------ | | Page(s) | |---------------------------------------------------------|---------| | Letter of Oath or Affirmation | | | Report of Independent Registered Public Accounting Firm | 1 | | Statement of Financial Condition | 2 | | Notes to the Financial Statement | 3-5 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) I 00 E. Sybclia Ave. Suite 130 Maitland, FL 32751 Certi}ied Public Accoun/a/1/s Email: pam@ohabco.com Telephone 407-740-73 11 Fax 407-740-6441 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Member's of DCMB Securities, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of DCMB Securities, LLC as of June 30, 2024, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of DCMB Securities, LLC as of June 30, 2024 in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of DCMB Securities, LLC's management. Our responsibility is . to express an opinion on DCMB Securities, LLC's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to DCMB Securities, LLC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. We have served as DCMB Securities, LLC's auditor since 2016. Maitland, Florida September 11, 2024 {5}------------------------------------------------ #### DCMB SECURITIES, LLC STATEMENT OF FINANCIAL CONDITION AS OF JUNE 30, 2024 | Assets | | |---------------------------------------------|---------------| | Cash | \$
118,601 | | Total Assets | \$
118,601 | | Liabilities and Member's Equity | | | Accounts payable and other accrued expenses | \$
13,500 | | Total Liabilities | 13,500 | | Member's Equity | 105,101 | | Total Liabilities and Member's Equity | \$
118,601 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ #### **DCMB SECURITIES, LLC NOTES TO THE FINANCIAL STATEMENT JUNE 30, 2024** #### **1. Nature of Business** DCMB Securities, LLC (the Company), was organized in November 2007 as a single member Texas limited liability company. The Company is a broker-dealer in securities registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC). The Firm is not claiming an exemption from 17 C.F.R. § 240. 15c3-3. The Firm is filing the exemption report in reliance on footnote 7 4 of the 2013 SEC Release 34-70073. As a Non-Covered Firm that does not claim an exemption under paragraph (k) of Rule 15c3-3 (i.e. , paragraph (k)(1 ), (k)(2)(i) or (k)(2)(ii)), during the reporting period the Firm affirms that it (1) does not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Exchange Act Rule 15c2-4 ("Rule 15c2-4"); (2) does not carry accounts of or for customers; and (3) does not carry PAB accounts (as defined in Rule 15c3-3). These conditions were met throughout the most recent fiscal year without exception. Under the exemptive provisions of footnote 7 4, the Computation for Determination of Reserve Requirements and Information Relating to the Possession and Control Requirements are not required. The Company's operations consist primarily as a broker and/or placement agent in private placements of securities and merger and acquisition services to institutions located in Texas. The Company is located in Houston Texas. #### **2. Summary of Significant Accounting Policies** #### Use of Estimates The accompanying financial statements have been prepared in conformity with U.S. generally accepted accounting principles, which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. #### Cash Equivalents For purposes of reporting the statement of cash flows, the Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. As of the statement of financial condition date, and periodically throughout the year, the Company has maintained balances in accounts in excess of federally insured limits. ## **See Report of Independent Registered Public Accounting Firm.** {7}------------------------------------------------ #### **DCMB SECURITIES, LLC NOTES TO THE FINANCIAL STATEMENT JUNE 30, 2024** ### Revenue from Contracts with Customers Revenues from contracts with customers are composed of investment banking fees. Such fees are recognized at the point in time when the Company's performance under the terms of the contractual arrangement is completed, which is typically at the closing of the transaction. Reimbursed expenses related to these transactions are recorded as revenue and are included in investment banking fees. In certain instances, for advisory contracts, the Company will receive amounts in advance of the deal's closing. In these instances, revenue is recognized over time in which the performance obligations are simultaneously provided by the Company and consumed by the customer. There are no advances at June 30, 2024. ## Revenue Recognition # Significant Judgments Revenue from contracts with customers includes fees from investment banking. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events. #### Income Taxes The Company is a single member limited liability company and is treated as a disregarded entity for federal income tax purposes. Taxable income or loss of the Company is ineluctable in the income tax return of the Member; therefore, no provision for federal income taxes has been made in the accompanying financial statements. The Company is subject to Texas state tax. The federal and state income tax returns of the Company for 2023, 2022 and 2021 are subject to examination by the IRS and state taxing authorities, generally for three years after they were filed. #### **3. Net Capital Requirements** The Company is subject to the SEC uniform net capital rule (SEC Rule 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. Rule 15c3-1 also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net #### **See Report of Independent Registered Public Accounting Firm.** {8}------------------------------------------------ ### **DCMB SECURITIES, LLC NOTES TO THE FINANCIAL STATEMENT JUNE 30, 2024** ratio would exceed 10 to 1. At June 30, 2024, the Company had net capital of \$105,101 which was \$100,101 in excess of its required net capital of \$5,000. Aggregated indebtedness to net capital was .12 to 1 for 2024. #### **4. Related Party Transactions/Concentration of Revenue and Services** The Company has an Expense Sharing and Management Fee Agreement (Agreement) wth a related party company, effective September 1, 2014, revised May 2022, June 2023 and November 2023. The Agreement may be terminated by either party with a onemonth notice. Under the Agreement, the related party company is to provide office space, personal property and utilities. The fee under the Agreement was \$100,000 a month, was decreased in June 2023 to \$20,000 a month and decreased to \$2,000 a month in October 2023 and represents the allocable share of the services provided by the related party company. Expenses incurred under this Agreement totaled \$78,000 during the year. There is an amount due of \$0 to the related party as of June 30, 2024. The Company earned \$600,000 or 100% of its revenue during the year from one merger and acquisition financing transaction. #### **5. Commitments and Contingencies** The Company does not have any commitments or contingencies. #### **6. Subsequent Events** Management has evaluated the Company's subsequent events and transactions that occurred through the date which the financial statements were available to be issued and determined the Company has no events and transactions occurring subsequent to June 30, 2024 requiring disclosure. **See Report of Independent Registered Public Accounting Firm.** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.